Question
3.You initiated a transaction to purchase a 2.875% coupon 10-year U.S. Treasury Note on Wednesday 9/13/2018. The maturity date of the note is 5/15/2026 and
3.You initiated a transaction to purchase a 2.875% coupon 10-year U.S. Treasury Note on Wednesday 9/13/2018. The maturity date of the note is 5/15/2026 and its yield to maturity is 2.950%. Please answer the following questions about this note. (Note: you can check your work in parts (f), (g) and (h) using the BOND spreadsheet in your calculator, but I want to see the equations setup and worked through in those parts for full credit.)
(e) How many days between the last coupon and the SDT?
(f) What is the full price of the note on the SDT? Draw a timeline for just the current coupon period (like we did in class) and calculate the bonds full price using Method 2 in the handout, which is the method used in the text and slides).
(g) What is the accrued interest on the SDT?
(h) What is the clean price of the note on the SDT?
please show work using the BOND sheet function in the finance calculator. All prices and interest rates must be expressed to THREE decimal places. You must show your work for every problem
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